Chemfab Corporation Announces Second Quarter Revenues Up 7.7%.MERRIMACK Merrimack, river, United States Merrimack, river, c.110 mi (180 km) long, formed at Franklin, S central N.H., by the junction of the Pemigewasset (rising in the White Mts.) and Winnipesaukee rivers. It flows S past Concord and Manchester into NE Mass. , N.H.--(BUSINESS WIRE)--Jan. 21, 1999--Chemfab Corporation (NYSE NYSE See: New York Stock Exchange :CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. ) today announced that its second quarter revenues were $27.9 million, up 7.7% over the same period in the prior year. Measured in constant foreign currency rates, sales for the quarter would have increased by 6.8%. Net income for the second quarter, which ended December December: see month. 27, 1998, was $2,506,000, or $0.31 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , compared with $2,549,000, or $0.31 per share diluted, for the same quarter a year ago. For the twenty-six weeks ended December 27, 1998, the first half of fiscal 1999, net income per share diluted increased 8.9%, from $0.56 to $0.61, on net income of $4,901,000, compared with $4,587,000, in the prior year. Worldwide sales for the first half of fiscal 1999 increased 10.6% to $53.1 million from $48.1 million. Measured in constant foreign currency rates, sales for the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. would have increased by 9.8% Commenting on the results for the quarter, Dr. John W. Verbicky, Chemfab's President and Chief Executive Officer, said: "Industrial sales during the quarter, including those derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from our recent acquisition, were strong and up 11.8% from the same quarter a year ago. On a year-to-date basis industrial sales are up 8.2% over the first half of fiscal 1998. As we have previously announced, second quarter earnings were adversely impacted by delays in project related shipments at the end of the quarter. The $3.2 million revenue from the Tent City The term tent city covers a wide variety of usually temporary housing made of tents. Tent cities may originate spontaneously or be planned. Tents may or may be not comfortable but usually lack plumbing and sanitary facilities which tend to be communal. project was substantially less than anticipated due to the raw material quality and availability issues we experienced early in the project; and those sales did not contribute to the reported earnings for the quarter. Despite these issues, gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the second quarter improved to 33.9% compared with 33.7% in last year's second quarter." Commenting on the outlook for the balance of the year, Dr. Verbicky stated, "The forecast for fiscal 1999 continues to look strong. Although we expect no earnings contribution from the Tent City project based on the reduced volume of shipments in fiscal 1999, we still expect our base business to generate record revenues and solid double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" growth in earnings for fiscal 1999." Chemfab Corporation is a world leader in polymer-based engineered products and materials systems Materials system is an advanced type of texture mapping that allows for objects in video games to simulate different types of materials in real life. This makes it so that the texture not only contains graphical data, but references for sound data and physics data (such as density). for use in severe service environments. Chemfab's principal core competence Core competence Primary area of expertise. Narrowly defined fields or tasks at which a company or business excels. Primary areas of specialty. is in the design, manufacture and fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. of flexible fiber-reinforced fluoropolymer A fluoropolymer is a polymer that contains atoms of fluorine. It is characterized by a high resistance to solvents, acids, and bases. Fluoropolymers were discovered serendipitously in 1938 by Dr. Roy J. Plunkett. composite materials composite material or composite, any material made from at least two discrete substances, such as concrete. Many materials are produced as composites, such as the fiberglass-reinforced plastics used for automobile bodies and boat hulls, but the which comprise, in whole or in part, the majority of its products. The Company also produces and sells specialty fluoropolymer films and silicone-based products. Worldwide end-use applications are in electrical, environmental, food processing Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. The food processing industry utilises these processes. , architectural, aerospace, communications, protective clothing, other industrial markets and consumer bakeware applications. NOTE: This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned those forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested due to certain risks and uncertainties, including raw material procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , production and related risks, shipment delays and shortfalls, and any associated penalties for a contract of the magnitude of Tent City, final settlement negotiations and their impact on the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. by Birdair, and any fluctuation Fluctuation A price or interest rate change. in the demand for architectural material and the impact of the integration of our recently announced acquisitions. Additional information concerning the litigation regarding the Tent City project and certain other risks and uncertainties, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's base business and that of its customers worldwide, that could cause actual results to differ materially from those projected or suggested, is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or the Company upon request. The forward-looking statements contained herein represent the Company's judgment as of the date of this release, and the Company cautions readers not to place undue reliance on such statements. -0-
Second Quarter Earnings Announcement, Fiscal 1999
CHEMFAB CORPORATION
CONSOLIDATED INCOME STATEMENTS
Three Months Ended
Dollars in thousands,
except per share amounts 27-Dec-98 28-Dec-97
(Unaudited)
Net sales $ 27,892 $ 25,902
Gross profit 9,462 8,734
Gross margin % 33.9% 33.7%
Selling, general and
administrative expenses 5,070 4,271
Research and development 796 763
Other (income) expense, net (36) 32
Interest income, net (25) (78)
Income before taxes 3,657 3,746
Provision for income taxes 1,149 1,197
Net income $ 2,508 $ 2,549
Earnings per share of common stock:
-Basic $ 0.32 $ 0.32
-Diluted $ 0.31 $ 0.31
Weighted average common shares outstanding:
-Basic 7,839 7,926
-Diluted 8,087 8,251
Year to Date
Dollars in thousands,
except per share amounts 27-Dec-98 28-Dec-97
(Unaudited)
Net sales $ 53,125 $ 48,055
Gross profit 17,899 16,293
Gross margin % 33.7% 33.9%
Selling, general and
administrative expenses 9,324 8,240
Research and development 1,656 1,422
Other (income) expense, net (160) 48
Interest income, net (128) (160)
Income before taxes 7,207 6,743
Provision for income taxes 2,306 2,156
Net income $ 4,901 $ 4,587
Earnings per share of common stock:
-Basic $ 0.63 $ 0.58
-Diluted $ 0.61 $ 0.56
Weighted average common shares outstanding:
-Basic 7,828 7,947
-Diluted 8,096 8,263
Second Quarter Earnings Announcement, Fiscal 1999
CHEMFAB CORPORATION
CONSOLIDATED BALANCE SHEETS
Dollars in thousands 27-Dec-98 30-Jun-98
(Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 2,664 $ 11,099
Receivables:
Trade 22,845 20,946
Other 104 17
Costs and estimated earnings in excess of
billings on uncompleted contracts 2,925 1,373
Inventories 28,325 17,403
Prepaid expenses and other current
assets 1,484 720
Deferred tax assets 730 730
Total current assets 59,077 52,288
Property, plant and equipment,
at cost 58,988 50,260
Less: accumulated depreciation (27,959) (26,043)
Property, plant and equipment,
net 31,029 24,217
Goodwill, net of amortization 15,302 9,926
Other assets 2,600 2,673
Total assets $ 108,008 $ 89,104
Current liabilities:
Accounts payable and
accrued expenses $ 19,061 $ 12,307
Short term borrowings 6,011 0
Accrued income taxes 3,094 2,540
Billings in excess of costs and
estimated earnings on
uncompleted contracts 164 151
Total current liabilities 28,330 14,998
Deferred tax liabilities 1,752 1,752
Shareholders' equity:
Common stock, par value $.10 876 869
Additional paid-in capital 25,965 25,008
Retained earnings 65,937 61,036
Treasury stock, at cost (15,826) (15,137)
Foreign currency translation
adjustment 974 578
Total shareholders' equity 77,926 72,354
Total liabilities and
shareholders' equity $ 108,008 $ 89,104
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